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Defining Marketing for the 21st Century

Marketing Management
A South Asian Perspective, 13th ed

Chapter Questions
Why is marketing important? What is the scope of marketing? What are some fundamental marketing concepts? How has marketing management changed? What are the tasks necessary for successful marketing management?
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Good Marketing is No Accident

The roaring success of four-wheeler Tata Ace, in a market earlier dominated by three-wheeler load carriers, was due to a deep understanding of the market needs and customer requirements.
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What is Marketing?
Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.

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What is Marketing Management?

Marketing management is the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value.

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Selling is only the tip of the iceberg

There will always be a need for some selling. But the aim of marketing is to make selling superfluous. The aim of marketing is to know and understand the customer so well that the product or service fits him and sells itself. Ideally, marketing should result in a customer who is ready to buy. All that should be needed is to make the product or service available. Peter Drucker
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What is Marketed?
Goods Services Events & Experiences Persons Places & Properties Organizations Information Ideas
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Successful New Product Launches Require Careful Planning

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Marketing Can Promote Ideas

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Figure 1.1 Structure of Flows in a Modern Exchange Economy

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Figure 1.2 A Simple Marketing System

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Demand States
Negative Nonexistent Latent

Declining

Irregular

Full

Overfull

Unwholesome

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Key Customer Markets

Consumer Markets Global Markets

Business Markets

Nonprofit/ Government Markets

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www.marutitruevalue.com

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Functions of CMOs
Strengthening the brands Measuring marketing effectiveness Driving new product development based on customer needs Gathering meaningful customer insights Utilizing new marketing technology

Core Marketing Concepts

Needs, wants, and demands Target markets, positioning, segmentation Offerings and brands Value and satisfaction Marketing channels Supply chain Competition Marketing environment

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Positioning
Press ads of the Scorpio focused on the functional features of the vehicle and the television ads focused on emotional benefits.

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The marketplace isnt what it used to be

Information technology Globalization Deregulation Privatization Competition Convergence Consumer resistance Retail transformation
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New Consumer Capabilities

A substantial increase in buying power A greater variety of available goods and services A great amount of information about practically anything Greater ease in interacting and placing and receiving orders An ability to compare notes on products and services An amplified voice to influence public opinion
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Company Orientations

Production

Product

Selling

Marketing

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COMPANY ORIENTATION
PRODUCTION: consumers will prefer products that are widely available and inexpensive Relevant concept in a developing country like China with introducing LENOVO and Haier Marketers use this concept when they want to expand the market
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Continued..
PRODUCT CONCEPT-Marketers focus on making superior products and improving them over time INNOvation has to be relevant e.g. COOL Cats,Decorated Ceiling fans decorated with cartoons meant for children failed

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Continued..
Selling concept Practiced more aggresively with unsought goods like insurance Very aggressive selling and promotional effort

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Continued..
Marketing concept Emerged in the late 50s Customer centered approach To find the right product for your customer

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Figure 1.4 Holistic Marketing Dimensions

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RBC emphasizes a relationship marketing approach

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Figure 1.5 The Four Ps

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Internal Marketing
Internal marketing is the task of hiring, training, and motivating able employees who want to serve customers well.

Copyright 2009 Dorling Kindersley (India) Pvt. Ltd.

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Performance Marketing
Financial Accountability Social Responsibility Marketing
Social Initiatives Corporate social marketing Cause marketing Cause-related marketing Corporate philanthropy Corporate community involvement Socially responsible business practices
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Marketing Management Tasks

Develop market strategies and plans Capture marketing insights Connect with customers Build strong brands Shape market offerings Deliver value Communicate value Create long-term growth
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Marketing Debate: Take a Position!

Does marketing shape consumer needs? or Does marketing merely reflect the needs and wants of consumers?

Copyright 2009 Dorling Kindersley (India) Pvt. Ltd.

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Marketing Discussion
Consider the societal forces noted in the chapter (e.g., information technology, globalization, deregulation, consumer resistance, retail transformation). How have marketing practices shifted to accommodate and even leverage these forces?
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